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How to Protect Your Money From Inflation in 2021

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Dad jokes aside, inflation is dominating headlines in the U.S. Consumer prices rose 5.4% in July, the highest rate since the Great Recession. While a small rise isn’t a bad thing, sustained inflation is an ominous sign for investors.

Fortunately, there are ways to combat inflation. Here’s what you need to know to protect your money and purchasing power.

Most economists believe low, stable and most important consistent inflation can benefit the economy. That’s why the Federal Reserve aims for a 2% annual inflation rate. The logic is that this is a happy medium for maximum employment and price stability.

Of course, inflation can be too high or too low. When inflation is too high, it places a burden on consumers. People have a harder time buying essential goods and services, like food, gasoline and shelter. When inflation is too low, it can weaken the economy.

In a perfect world, the Federal Reserve would hit a 2% inflation rate, and the economy would remain stable. The problem is that we don’t live in a perfect world. The coronavirus alone has made the last 1.5 years wildly unpredictable.

One antidote to the pandemic has been........

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